Summit Mining Exploration II, a US-based subsidiary of Sumitomo Corp, has signed an agreement with Renaissance Gold to acquire 70% stake in the Big Gossan copper project in Nevada, US.
Under the terms of the agreement, Summit II has agreed to spend a minimum of $570,000 within the first agreement year and a minimum of $500,000 per year thereafter.
Renaissance Gold president and chief executive officer Richard Bedell commented, "They [Summit] are a strong group to align with for mine development and metals marketing and have a corporate culture that allows for strong technical interaction," said Bedell.
"The Big Gossan is an early stage exploration property, but contains significant potential for large scale copper and precious metal production."
Big Gossan copper project in Pershing County is exposed for about 1.5 km along strike and overlaps with the southeast end of a magnetic low that trends to the northwest for about 3km.
Continuing to the northwest is a one-kilometre strike of exposed copper workings with a similar northwest structural trend.
The project is copper dominant and contains a number of near-term drill targets at either end of the geophysical anomaly and the buried core allows for the possibility of significant growth.
Sumitomo has a similar agreement on RenGold's Spruce Mountain property through another subsidiary, Summit Mining Exploration, which has seen an initial round of drilling.
Summit has spent over $1.8m on Spruce Mountain exploration and is expected to agree to a second round budget of $1.7m in additional expenditures.